IBM Blockchain Platform

Technical Overview
Updated March 2018
Introduction
This paper provides an overview of the capabilities of the IBM
Blockchain Platform built on the Linux Foundation’s
Hyperledger Fabric and Hyperledger Composer. The IBM
Blockchain Platform provides a managed, full stack
blockchain- as-a-service (BaaS) offering delivered through the
IBM Cloud, allowing members to develop, govern, and operate
a network with the performance and security necessary for
even the most demanding use cases in regulated industries.
The IBM Blockchain Platform leverages Hyperledger Fabric to
enable a new kind of distributed business network founded on
the principles of finality, trust, and privacy.
1. Data finality matters
When transactions are committed to the ledger they should not
be removed or changed by the actions of a single party. Because
Hyperledger Fabric does not fork, information appended to the
blockchain will not change unless updated with another
transaction. Transactions are only finalized when they are signed
by the appropriate parties according to a flexible construct known
as endorsement policies. Distributed ledger technology must
enable co-development of a shared version of the truth for a
specific business network.
2. Trust is achieved through required membership
endorsements, not through anonymity
Unlike permission-less networks, Hyperledger Fabric and the IBM
Blockchain Platform are not based on trust through anonymity.
Participants to business networks must be known to the network,
enabling distributed trust amongst a known business network.
Regulatory requirements including HIPAA and GDPR often
dictate certain information on participants and transactions in a
network be known.
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3. Privacy on the network
Businesses require full confidence that both their transaction
data and the transactions themselves are confidential.
Hyperledger Fabric enables confidential communications
through channels when information is not desired to be shared
with the entire network. A managed BaaS platform offers the
fastest, simplest and most cost- effective way to run a
decentralized network amongst a group of organizations. The
IBM Blockchain Platform offers the right tools and capabilities
for blockchain projects as they incubate and mature from
experimental proofs of concepts all the way to distributed
multi-party production networks.
Architecture overview
The IBM Blockchain Platform builds on top of key open-source
tools to provide the necessary infrastructure for developing,
operating and governing enterprise solutions. Figure 1 outlines
the end to end architecture of the IBM Blockchain Platform.
This captures the experience from hundreds of client
engagements to provide a production-ready platform for
enterprise blockchain networks. It is the only business-ready
end to end platform to enable institutions to activate a
decentralized blockchain network in record time. Numerous
customers are using this architecture in their live networks
today.
Figure 1. IBM BLOCKCHAIN PLATFORM
Develop
The first step in recognizing value of transactional business
networks is enabling developers to materialize innovative
business ideas. The IBM Blockchain Platform allows developers
to leverage common tools and languages to model, build, test,
and deploy their business applications to a distributed business
network.
The Platform enables developers to
• Ensure close alignment across business and technology to
significantly reduce blockchain application develop time
via a unique modeling language.
• Quickly build blockchain skills within an existing bench of
programmers by leveraging popular tools and languages
such as JavaScript and REST.
• Flexibility to learn and develop in preferred environment
with an open and modern toolset.
The IBM Blockchain Platform builds on top of two open-
source code bases governed by the Linux Foundation’s
Hyperledger: Hyperledger Fabric and Hyperledger Composer.
Hyperledger Composer serves as the foundation for modeling
business use cases using common programming languages
and tools on top of Hyperledger Fabric.
IBM Blockchain Platform: Develop
IBM Blockchain Platform: Develop, using Hyperledger
Composer is the framework to build blockchain based
applications that reflect the core structures of business
networks. This framework enables developers to:
• Model business networks
• Expose blockchain data and business logic via auto-
generated REST APIs
• Create applications that consume blockchain data
IBM Blockchain Platform: Develop includes a powerful object-
oriented domain specific language, used to specify a business
model, including the structure of assets, participants and
transactions. The domain model is used across Hyperledger
Composer for code generation, type validation, user interface
generation and API generation - amongst other things.
IBM Blockchain Platform: Develop contains a series of code
libraries, data models and runtime, developer tools, and a web-
based developer environment designed to expedite learning
and adoption. All of these capabilities bring speed and
efficiency while reducing risk during the application
development process.
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IBM Blockchain Platform: Develop is designed around a
collection of artifacts that is a high-level abstraction over the
functional primitives of Hyperledger Fabric, including DSL-
based duchess main models for defining the assets and
relationships, JavaScript-based functions for the business
logic (a.k.a smart contract), and declarative expression of
access control rules over the domain models. The IBM
Blockchain Platform builds on Hyperledger Composer to allow
developers to easily go from building to deploying
applications onto live decentralized business networks in a
secure and repeatable fashion.
Topcoder Challenge
Hyperledger Composer was recently used in a Topcoder
challenge, designed for non-blockchain developers to model
specific regulations for a decentralized business network. The
challenge received over 100 registrants with winning
submissions involving medical device provenance and
registration, oil import regulations, ferry and passenger boat
registration and HUD approved loan and property sales.
Developers easily grasped the business modeling language to
create sample applications to deploy onto business networks
and automate regulatory compliance. More information on
the challenge can be found on the Topcoder website. 1
Developer tooling
Developers have multiple options for building and testing their
applications before deploying to live business networks. The
IBM Blockchain Platform enables developers to quickly and
easily align business requirements and accelerate blockchain
application development for free with a cloud sandbox and
interactive playground that turns any programmer into a
blockchain developer. These tools are designed to turn a
business design into code in your preferred environment:
1. Try online: Leverage Hyperledger Composer, an open-
source development tool to learn key blockchain concepts,
create network definitions, and leverage reusable industry
models and smart contract libraries.
2. Install on laptop: After exploring online, leverage certified
Docker images of Hyperledger Fabric and Hyperledger
Composer.
3. Develop together on cloud: Developing on the cloud allows
for all members of your ecosystem to collaborate, share
code and view playbacks of your running blockchain
network. This feature utilizes IBM’s Container Service,
using Docker and Kubernetes to quickly stand-up
blockchain test networks, with free and fee options.

Industry Use Cases
With the IBM Blockchain Platform there is no need for
developers to start from scratch. The Platform provides
developers with a number of simple industry use case scenarios
to start their exploration with. Additional industry use cases will
be added in the future, but at of the time of this writing, IBM
provides use cases for supply chain, financial services,
automotive, real estate, food safety, identity, and international
trade.
Simple Integration with Existing Business Data (SOR)
IBM believes businesses will want to integrate their blockchain
operations with many of their current data sets. To help make
this integration easier for the application development, IBM is
providing APIs to aid integration with Systems of Record
through Hyperledger Composer REST API server. Hyperledger
Composer also leverages Node-Red to model business flows, as
well as LoopBack to assist with routing data flows.
The IBM Blockchain Platform supports a range of development
options to enable alignment of business needs with technical
capabilities. This is done without the need to separately
integrate multiple protocols and platforms after learning
vulnerable programming languages for smart contacts.
Govern
Perhaps the most important feature to decentralized business
networks is clear and effective governance definitions, models,
and tools. The IBM Blockchain Platform provides key features to
ensure networks are created with a well-defined model, and
update as needed without restarting the entire network.
Initiating and governing a blockchain network across a group of
members once it is operational can take significant amounts of
coordination, time and effort. The ability to properly govern a
blockchain network is often overlooked and underestimated.
Proper governance ultimately ensures the network is in
compliance, removes uncertainly and risk of your business
obligational (embodied in the smart contracts), ensures privacy
and confidentiality of different classes of transactions
(embodied in channels) and affords a vetting process to
introduce new members.
Key benefits to governance provided with the IBM
Blockchain Platform:
• Democratic management tools allow members of the
network to collectively manage the rules and policies
governing the decentralized business network.
• Dynamic management environment allows members to be
added to the network as it grows and new smart contracts
become available.
• Pre-built tools for faster on-boarding, customization, and
activation
The IBM Blockchain Platform introduces the first set of
integrated tools to allow teams to enforce change
management of the network across the cohorts via
customizable democratic policies.
Activation Tool
Decentralized business networks constantly change as new
participants and transactions are created. Activation tools
allow members to easily invite new members, set up new
smart contracts, and create channels within a broader
business network.
Policy Editor
Core components of a blockchain network such as consensus,
membership policy, smart contract, and transaction channels
must be supported in a flexible and democratic manner. The
Policy Editor within the IBM Blockchain Platform allows
members (all or some) of a decentralized business network to
collaboratively update the policies that govern the network.
Multi-Party Workflow Tool
Network members require visibility in how parties are
interacting on the network. The IBM Blockchain Platform
provides a workflow tool with a member activity panel, showing
integrated and customized notifications, and secure signature
collection for policy voting.
Network Model
As is the case with traditional business networks, different
participants serve different business purposes. The IBM
Blockchain Platform enables participants to be configured in
specific roles, subject to governance policies in line with the
business purpose. Members in a decentralized business
network on the IBM Blockchain Platform can serve any
combination of roles as a participant, member, user, member-
provider, or member-consumer. Each member can operate
multiple peers depending on their business needs as well as
participate in different networks. Communication “channels”
can be configured so that only specified members are able to
view certain confidential data. Members are able to submit and
make updates to their copy of the ledger through the
consensus and ordering cluster. Applications with the proper
identity certificates are likely to be the main user interface for
transacting on the network.
Operate Modularity in Hyperledger Fabric allows the IBM Blockchain
Decentralized business networks handling mission critical Platform to leverage industry leading security practices to serve
applications and transactional data need to be built on a production-ready networks.
platform that supports secure and scalable “always-on”
Scalability
operation and updates. The IBM Blockchain Platform enables
Organizations across sectors demand solutions that scale as
members to deploy and operate decentralized networks with a
they move past initial explorations and proof-of-concepts.
production-ready, security hardened service.
Hyperledger Fabric was built to support growing business
networks which need to dynamically add participants and
Operating System
support increasing transaction processing.
The core operating system of the IBM Blockchain Platform is
Hyperledger Fabric. The back-end operating environment of the
The IBM Blockchain Platform enables a common network
network is driven by the service plan selected by network
management capability to ensure the network grows in terms of
founders. Founders interested in the Enterprise and Enterprise
both members and transactions from pilot to production. Starter
+ options can leverage the high security LinuxONE infrastructure
Plan allows a test network to be quickly spun up, networks to be
while Entry plans can use more flexible options. The Starter
added, and network migration to Enterprise as the throughput
Plan offers a free trial that includes a fully functional kick starter
demands increase.
network, sample applications and tutorials.

Many aspects of scalability depend on network configuration of

Hyperledger announced the production-ready version of
consensus, membership, or security. Modular platforms support
Hyperledger Fabric 1.0 in July of 2017. Hyperledger Fabric v1.0
the ability to configure a network to support needed throughput
benefited from the contribution of 159 developers from 28
numbers. However, Hyperledger Fabric is able to scale to
organizations, built by the enterprise community, for the
support throughput for use-cases specific to enterprise needs.
enterprise community. Hyperledger’s Technical Steering
Current networks are seeing thousands of transactions per
Committee drove community involvement and contribution in
second.
line with the needs of enterprise adoption, enabling modularity,
scalability, and consensus for production networks.
Scalability means more than just throughput. Network growth
requires that new participants are easily able to join and
Hyperledger Fabric provides core features to address specific
transact on the network. Hyperledger Fabric separates
needs of a permission blockchain network with organizational
participant roles into endorsers and committers. This means
membership from businesses large and small. Hyperledger
that participants that just want a copy of the ledger can join as
Fabric is built with modularity throughout the architecture to
committers who update their copy of the ledger without being
allow a variety of implementations on cryptography, identity,
burdened with endorsing transactions
consensus algorithms, smart contract languages and other
aspects to be easily swapped based on the needs of the
Finally, Hyperledger Fabric introduces the concept of channels,
consortium. Hyperledger Fabric provides a strong foundation for
enabling participants to transact with complete confidentiality
building decentralized business networks without the need to
and participate in numerous channels with specific business
create a patchwork of disparate solutions.
partners.
Modularity
Blockchain networks must be able to incorporate a wide range These features are further enhanced within the IBM Blockchain
of new and existing “pluggable” features depending on the Platform through governance and network configuration tooling
enterprise and industry. As a result, Hyperledger Fabric was (as discussed later in the paper). Decentralized business
developed to be modular in order to support networks as new networks require a platform which supports the ability to
features emerge. Key features of Hyperledger Fabric are dynamically add participants, assets, and transactions.
designed to be modular:
• Consensus: Supports any voting-based consensus
algorithms for crash fault tolerance and byzantine fault
tolerance. Currently shipped with Apache Kafka based
implementation, with others under development such as
one based on Raft and one based on BFT-SMaRt.
• Database: State database options include LevelDB and
CouchDB with additional options under development.
• Membership services: Currently implemented based on
Public Key Infrastructure, with a zero-knowledge proof
based implementation coming soon.

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Consensus
Perhaps the most important feature to the security, scalability,
and maturity of any blockchain protocol is a clearly-defined and
implemented consensus algorithm. Selecting the appropriate
consensus algorithm is vital to enabling distributed trust within
a decentralized business network.
As mentioned above, consensus in Hyperledger Fabric is
designed to be pluggable and fit specific enterprise use-cases.
For example, development networks with limited security
needs may be suited for a SOLO consensus model that allows a
single node to validate all transactions. Production networks
are much more likely to require crash and byzantine fault
tolerant consensus algorithms. Hyperledger Fabric enables
both.
Hyperledger Fabric currently supports voting based consensus
algorithms in permissioned networks. The combination of
voting and permissions enables network operation with better
performance than many public, byzantine fault tolerant,
networks. The absence of unknown actors requires that
burdensome consensus algorithms are not required. Apache
Kafka is provided out-of-the-box and supports crash fault
tolerance so a network will continue to function in the event of a
partial network crash. Other consensus algorithms include BFT-
SMaRt and SBFT (Simplified Byzantine Fault Tolerance) to
tolerate malicious actions in consensus. Hyperledger published
a detailed comparison of the different Hyperledger
Frameworks, including Hyperledger Fabric.
Hyperledger Fabric’s success to date is driven by the massive
amount of community support it has received through
Hyperledger. Open governance of the code base with a clear
purpose has allowed it to emerge as the industry leading
protocol for enterprise production networks.
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High Security Infrastructure
As mentioned above, the choice of infrastructure is tied to the
service plan selected. The IBM Blockchain Platform
Enterprise and Enterprise + plans leverage industry-leading
security through LinuxOne Emperor to ensure that all code
and data are encrypted at all times, tampered virtual
machines (VM’s) will not start, and no admin or privileged
access occurs. Code is executed within IBM Secured Services
Containers (SSCs) which protect the security of the ledger.
SSC’s ensure:
• Tenants are isolated from eachother
• Protection from insider attacks or compromised
credentials by removing privileged access
• Data encryption keys are private and data is inaccessible
even to IBM under court order
• Trusted Boot Loading for tamper proof code execution
The IBM Blockchain Platform meets the highest FIPS 140-2
Level 4 standard for hardware security modules (HSM).
Additionally, the IBM Blockchain Platform’s “always-on”
design supports network updates while operational and has
optimized performance on the world’s fastest Linux compute.
Each of these features is backed by IBM’s deep Hyperledger
Fabric expertise with 24x7x365 coverage for technical
blockchain support baked directly into the console.
Specific tools and capabilities were included to make
network operation easier. These include:
• Dashboards for monitoring and managing the resources
on the network
• Lifecycle management for seamless upgrades of the full
code stack without pausing the network.
• 24/7 Technical support integrated into the portal
• Hardened security stack with no privileged access,
malware and tamper resistance, 100% disk encryption
and HSM key protection.
Network Operations
The IBM Blockchain Platform enables founders to initiate, invite,
and configure a network with a simple user interface.
Initiating a network creates three ordering nodes, and two
certificate authorities. This provides a founder with a ready to
use foundation for creating their business network. Founders
can then invite additional participants to the network using any
number of peers. Participants will receive email notifications of
their invite so that they can easily join the network.
Based on agreement from the network members, the
configuration enables a founder to configure core network
components such as identity verification and channel creation.
This helps to ensure that only permissioned users access the
network, and confidential transactions are enabled via channels.
Business Operations
The IBM Blockchain Platform provides a user interface to
support business operations in an active blockchain network.
Updates are made without the need to take down the network or
halt operations.
Network membership
The cost of a blockchain network is shared across its members.
To participate in the network each member must
operate one or more peers which enables them to transact and
represents their copy of the shared ledger. The IBM Blockchain
Platform allows members to manage their peers by selecting
from four membership plans based on the ecosystem’s needs
for compute performance and isolation:
1. Starter Plan: Monthly charge with basic service levels
Kubernetes-based deployment for getting started and testing
(available now)
2. Enterprise Plan: Monthly subscription with advanced service
levels, ready for production networks (available now)
3. Enterprise Plus Plan: Dedicated compute for performance and
isolation available via a monthly subscription plan (available
later this year).
4. Self-Managed Plan: Signed and certified images of each
membership option.

Smart contracts represent a core feature of a blockchain

network by automating the exchange of information and assets.
Users of the IBM Blockchain Platform are easily able to deploy
and upgrade smart contracts across the network through a
single user interface. Additionally, users are able to edit the
policies of a channel which govern consensus.

Operational Monitoring
Users require the ability to monitor the activity on a network as
it grows in terms of transactions and participants. The IBM
Blockchain Platform provides both a Network Traffic Dashboard
and Network Health Monitor. These dashboards enable
proactive adjustment to network operations and clearly defines
resource consumption within the network.

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Conclusion
The past year has seen an incredible amount of blockchain
innovation from a diverse range of organizations. This innovation
has been fostered by open-source organizations bringing together
institutions and developers to make blockchain ready for enterprise.
The IBM Blockchain Platform represents the next step in this
innovation by enabling production networks to be built, governed,
and operated through an easy to use interface built on an
enterprise-ready protocol. It is easy to get started building your
use-case, application, or network today using a free introduction.
For more information: ibm.com/blockchain/platform
For developers to get started: https://www.ibm.com/blockchain/
getting-started.html
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March 2018
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www.topcoder.com/challenge
details/30057924/?type=develop
www.hyperledger.org/announcements/2017/07/11/
hyperledger-announces-production-ready-hyperledger-
fabric-1-0
www.hyperledger.org/wp-content/uploads/2017/08/
Hyperledger_Arch_WG_Paper_1_Consensus.pdf